Dollar Strengthens Amid Trumpâs Currency Warning and Biden's Last Semiconductor Crackdown on China
| Action Insight Daily Report 12-2-24 |
Dollar Strengthens Amid Trump’s Currency Warning and Biden's Last Semiconductor Crackdown on China |
Dollar started the week on strong footing, buoyed by a combination of technical factors and geopolitical developments. Technically, the greenback bounced after failing to break through near-term support level against Euro last week. Escalating political and trade tensions is giving further fuel to Dollar's rise. Over the weekend, US President-elect Donald Trump stirred market attention with a direct demand to BRICS nations, calling for a halt to any plans for a new currency alternative to Dollar. Trump warned on social media that such moves would trigger "100% tariffs" and potentially end these nations’ ability to sell into the "wonderful US economy", underscoring his intent to preserve the "mighty US dollar" as the dominant global currency. Adding to Dollar's momentum, reports indicate that the US is launching Biden administration's final large-scale efforts on China's semiconductor industry. According to sources cited by Reuters, the new measures include restricting exports to 140 Chinese companies, imposing curbs on shipments of high-bandwidth memory chips critical for AI training, and limiting advanced chipmaking tools and software. The initiative, targeting sectors critical to artificial intelligence and military advancements, underscores ongoing US-China trade tensions, which persist across multiple administrations.... |
EUR/USD Daily Outlook Daily Pivots: (S1) 1.0548; (P) 1.0572; (R1) 1.0603; More... EUR/USD dips mildly ahead of 1.0609 resistance, but stays well above 1.0330 support. Intraday bias remains neutral first. For now, further decline is still in favor with 1.0609 resistance intact. On the downside, break of 1.0330 will resume the fall from 1.1213. Also, sustained trading below 1.0404 key fibonacci level will carry larger bearish implication. Nevertheless, firm break of 1.0609 will confirm short term bottoming, and turn bias back to the upside for 1.0760 support turned resistance first | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 21:45 | NZD | Building Permits M/M Oct | -5.20% | 2.60% | 2.40% | | 23:50 | JPY | Capital Spending Y/Y Q3 | 8.10% | 6.70% | 7.40% | | 00:00 | AUD | TD-MI Inflation Gauge M/M Nov | 0.20% | 0.30% | | 00:30 | AUD | Retail Sales M/M Oct | 0.60% | 0.40% | 0.10% | | 00:30 | AUD | Building Permits M/M Oct | 4.20% | 2.10% | 4.40% | 5.80% | | 00:30 | AUD | Company Operating Profits Q/Q Q3 | -4.60% | 0.80% | -5.30% | -6.80% | | 00:30 | JPY | Manufacturing PMI Nov F | 49 | 49 | 49 | | 01:45 | CNY | Caixin Manufacturing PMI Nov | 51.5 | 50.5 | 50.3 | | 07:30 | CHF | Real Retail Sales Y/Y Oct | 2.70% | 2.20% | | 08:30 | CHF | Manufacturing PMI Nov | 49.5 | 49.9 | | 08:50 | EUR | France Manufacturing PMI Nov | 43.2 | 43.2 | | 08:55 | EUR | Germany Manufacturing PMI Nov F | 43.2 | 43.2 | | 09:00 | EUR | EurozoneManufacturing PMI Nov F | 45.2 | 45.2 | | 09:30 | GBP | Manufacturing PMI Nov | 48.6 | 48.6 | | 10:00 | EUR | Eurozone Unemployment Rate Oct | 6.30% | 6.30% | | 14:30 | CAD | Manufacturing PMI Nov | 50.8 | 51.1 | | 14:45 | USD | Manufacturing PMI Nov F | 48.8 | 48.8 | | 15:00 | USD | ISM Manufacturing PMI Nov | 47.5 | 46.5 | | 15:00 | USD | ISM Manufacturing Prices Paid Nov | 55.2 | 54.8 | | 15:00 | USD | ISM Manufacturing Employment Index Nov | 44.4 | | 15:00 | USD | ISM Manufacturing New Orders Index Nov | 47.1 | | 15:00 | USD | Construction Spending M/M Oct | 0.20% | 0.10% |
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